Massachusetts Scores Most Innovative U.S. State for the Second Year in a Row
Massachusetts Ranks #1 in Bloomberg List of Most Innovative States
Massachusetts took the top spot once again in Bloomberg’s ranking of the most innovative U.S. state with California in a close second.
Although Massachusetts had less technology company density than in 2015, the state secured the number one spot by having more engineering and science graduates and jobs in those industries, according to Bloomberg data.
Each state was measured on a 0-100 scale across six pillars:
- R&D intensity;
- High-tech density;
- Concentration of science, technology, engineering and mathematics employment;
- Science and engineering degree holders; and
- Patent activity.
Massachusetts recovered quickly from the last recession and has a 2.9 percent unemployment rate compared with a 4.6 percent national average.
What’s Massachusetts trick, you ask? Tax credits — especially those that promote research partnerships between companies and universities, like the R&D tax credit.
“Massachusetts got on a very early to the idea of trying to promote itself as an R&D center,” said Greg Sullivan, research director at Boston-based Pioneer Institute, a public policy research shop.
“Just shows the importance of the university cluster in Massachusetts, especially Harvard and MIT,” he continued.
Utah also deserves a shout-out for jumping six spots to number 14 from last year’s report. Bloomberg says this leap is due to an increase in R&D spending. Utah has followed in Massachusetts’ footsteps and focused on connecting education, government and local businesses.
California was followed by Washington, New Jersey and Maryland who took home spots 3, 4 and 5, respectively. If you jump to the bottom of the list, you will find Arkansas, West Virginia and Mississippi closing out the 2016 list.
If you are a business conducting R&D or any type of innovative work within the states, and are interested in learning more about the tax incentives available to you, please click here.
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